Conscientious Financial Planning and Retirement Income Management | 201-741-9528
from Lonier Financial Advisory LLC, Osprey, FL

Max your 401k/403b!

Is your 401k on autopilot, but you’re not sure where it’s going? I can help you make better choices. I can review your plan and tune-up the allocation of your savings and contributions across your plan’s fund options. Small tweaks now can compound to make significant differences later on. Your 401k/403b is your pension plan. Make sure it’s working as hard as you are!

The menu of choices in your plan probably looks impressive in the slick brochures and web pages from the plan service provider, which for 77% of sponsored plans recently surveyed by Deloitte, is a mutual fund company like giants Fidelity and T. Rowe Price.

The descriptions they provide of their funds and past performance are re-assuring. But it isn’t easy to see what’s going on inside their funds. How do the securities in one fund overlap with another and correlate with market risk? How risky is your current allocation? Does it align with you goals? Are you overexposed in some areas and under allocated in others? How do you know?

With new disclosure regulations for plan expenses going into effect this spring, you may be surprised to find out how much these mutual funds actually cost you—lowering your returns and taking money out of your pocket. Worse, surprisingly few of these expensive, actively managed funds are able to match their own benchmarks—not surprising considering that the expenses of active management, sales, and marketing all undercut a fund’s returns. How much are the funds you’ve chosen costing you? Is there a better performing, lower-expense allocation more suited to you?

[blockquote type=”blockquote_line” align=”left”]A few percentage points difference compounding over the years makes a big difference when it comes time to begin drawing income from your account[/blockquote]

These questions matter. Small percentage differences in returns and expenses compound over the years, making a big difference to you later on when it comes time to start drawing off your investments. It might make the difference between a comfortable retirement and one where you feel pinched all the time.

I’m Michael Lonier, the owner and investment adviser representative of Lonier Financial Advisory LLC. Our 401k/403b Max Plan is for investors who are building accounts in employer-sponsored plans.  It’s simple and straightforward. For one low fee, I will review your plan options and develop a low cost efficient asset allocation that aligns with your goals and risk tolerance. That gives you a risk adjusted return appropriate for your situation, not a generalization from a brochure. I’ll rebalance it for you regularly. And I’m always here to answer your money questions. My 401k/403b Max Plan can help ensure you don’t miss your target by a mile a few years down the road.

Contact me now, via email, the contact form, or phone (201-741-9528). We can talk about how to get the most from your 401k/403b, your concerns, and how I might help. There is no charge or obligation for these initial discussions.